Post Office Savings Scheme Interest Rates: Stock markets and cryptocurrencies have recently been volatile, with traders experiencing huge losses in several sessions. This is due to the risky nature of these assets, and now investors are backing off from investing in new stock and crypto coins while looking to put their money in schemes that would give them a guaranteed returns. Small savings schemes at the post office are highly reliable as they are backed by the government and are not subject to stock market movement. This includes Sukanya Samriddhi Yojana, Senior Citizens Savings Scheme or Public Provident Fund, which have a fixed rate of return. The rates of these post office schemes are likely to be hiked today.
PPF, SSY, Senior Citizens Interest Rates to Increase?
Small savings schemes, including post office savings schemes like PPF, SSY and senior citizens savings scheme have their interest rates set by the government at the beginning of each quarter. This means the government will notify the new rates today. The government may consider to change PPF, NSC or SSY scheme interest rates in June, thereby benefitting investors of these schemes. The Centre announces fresh rates for post office savings schemes at the end of the each quarter. June 30 is the end of Q1 for FY22-23. Over the past several months, the government has kept the interest rates unchanged.
Current Interest Rates on Post Office Savings Schemes Including PPF, SSY
Here are the current interest rates on post office savings schemes, which have come into effect from April 1 this year and will be valid till today, that is June 30.
i. Public Provident Fund: 7.1 per cent
ii. National Savings Certificate: 6.8 per cent
iii. Sukanya Samriddhi Yojana: 7.6 per cent
iv. Kisan Vikas Patra: 6.9 per cent
v. Savings Deposit: 4 per cent
vi. 1-Year Time Deposit: 5.5 per cent
vii. 2-Year Time Deposit: 5.5 per cent
viii. 3-Year Time Deposit: 5.5 per cent
ix. 5 Year Time Deposit: 6.7 per cent
x. 5 Year Recurring Deposit: 5.8 per cent
xi. 5-year Senior Citizen Savings Scheme: 7.4 per cent
xii. 5-year Monthly Income Account: 6.6 per cent
Post Office Interest Rates Calculation
The Gopinath Committee in 2011 had laid down a formula to calculate small savings interest rates. As per the formula, these rates should be 25-100 basis points higher than that of the average yields provided by government securtities for the same period of time. In the past one year, the 10-year bond yield has increased by 140 basis points from 6.04 per cent to 7.46 per cent, with the average rate of the April-June quarter being 7.31 per cent. Going by the recommendations of the Gopinath committee, PPF rates should be hiked to 7.81 per cent, while the Sukanya Samriddhi Yojana and Senior Citizens Savings scheme should provide over 8 per cent interest. The government, however, may not hike the rates going by this formula.